Elevate Campuses

India’s professionally managed student accommodation market remains significantly underpenetrated relative to the size of the higher-education ecosystem. Professionally managed accommodation represented less than 0.5% of higher-education enrolment in AY2024-25, while CBRE estimated only approximately 1.5-1.6 lakh operational on- and off-campus PMSA beds as of June 2025. This large gap between student enrolment and organised accommodation supply creates substantial long-term expansion potential. As universities increasingly outsource hostel development and management, and specialised operators gain institutional capital, professionally managed accommodation can become a larger part of campus infrastructure.

The key points are:

• Significant supply gap: Professionally managed accommodation represents less than 0.5% of higher-education enrolment, indicating substantial room for organised capacity expansion

• Limited organised inventory: India had only approximately 1.5-1.6 lakh PMSA beds as of June 2025 despite a large student population

• University outsourcing: Institutions are increasingly evaluating specialised partners for hostel development, ownership and professional management

India’s expanding higher-education ecosystem is creating a larger addressable market for student accommodation and related campus infrastructure. Higher-education enrolment increased from approximately 29.2 million in AY2011-12 to 43.3 million in AY2021-22, supported by rising participation, new institutions and improving access to tertiary education. NEP 2020 targets a 50.0% higher-education Gross Enrolment Ratio by 2035, which would require significant expansion in academic capacity and supporting infrastructure.

The key points are:

• Rising student enrolment: Higher-education enrolment increased from 29.2 million to 43.3 million between AY2011-12 and AY2021-22

• NEP-led expansion: The 50.0% GER target by 2035 implies substantial additional academic and student-infrastructure requirements

• Private-sector growth: Expansion of private universities and colleges is increasing opportunities for professionally developed campus infrastructure

India’s large K-12 education market is gradually shifting toward private, national-board and international-board institutions that increasingly compete on academic quality as well as infrastructure. The K-12 system serves approximately 248.0 million students, providing a significant underlying base for institutional expansion. Private unaided national-board schools recorded enrolment growth of approximately 6.5% CAGR between AY2012-13 and AY2023-24, while international-board schools have also expanded rapidly. Parents are increasingly evaluating schools based on safety, modern classrooms, sports facilities, technology, accessibility and overall campus experience.

The key points are:

• Large addressable market: India’s K-12 education system serves approximately 248.0 million students, creating significant underlying infrastructure demand

• Private-school expansion: Private unaided national-board school enrolments grew at approximately 6.5% CAGR between AY2012-13 and AY2023-24

• International-school growth: Rising demand for international curricula is supporting expansion of premium and globally benchmarked school infrastructure

The education-infrastructure and PMSA segments are exposed to education enrolment trends, the financial and reputational health of partner institutions, real-estate acquisition and financing costs, regulatory requirements, and competition from unorganised or institution-owned accommodation. Asset-heavy models add capital intensity and interest-rate exposure, while asset-light management models provide less contractual revenue protection.

The key risks are:

• HEI / operator health: institutional or financial mismanagement and reputational damage at a partner institution can affect enrolment and occupancy

• Capital intensity: acquisition of hostel or school assets requires large upfront capital and can increase leverage during expansion cycles

• Regulatory complexity: education, land, building, fee and affiliation frameworks vary by jurisdiction and can delay development or constrain operators

• Inflation and interest rates: higher construction, maintenance and financing costs can reduce project returns and slow new-campus investment

Policy support is primarily indirect through enrolment expansion, education reform, internationalisation and public-private participation rather than direct subsidies to student-accommodation owners. The same policy framework also imposes significant regulation on school operators, so benefits depend on compliant execution and institutional partnerships.

The key policies are:

• NEP 2020 - K-12: NEP 2020 targets 100.0% Gross Enrolment Ratio (GER) from pre-primary to higher-secondary education by 2030. The policy places greater emphasis on improving school infrastructure, safety standards, technology integration and holistic learning, supporting long-term demand for better-quality education facilities and professionally managed campus infrastructure

• NEP 2020 - Higher Education: NEP 2020 targets a 50.0% GER in higher education by 2035, requiring substantial expansion in universities, colleges, academic capacity and supporting infrastructure. Higher student enrolment can increase demand for institution-grade hostels, student accommodation, campus services and other education-linked real-estate infrastructure

• Public-Private Partnerships: CBRE highlights increasing adoption of PPP and DBFOT models for student accommodation and education infrastructure, particularly at public institutions. Projects involving IITs, IIMs and other institutions can create long-duration opportunities for private operators to finance, develop, own, operate and maintain student housing and related campus assets

• Internationalisation of Higher Education: The UGC’s 2023 framework allowing eligible foreign universities to establish campuses in India can support incremental demand for high-quality academic and residential infrastructure. Entry of international institutions may increase the requirement for professionally managed student accommodation, modern campus facilities and internationally benchmarked education infrastructure